AML ‘Special Measure’ Imposed on North Korea

November 8, 2016

The Financial Crimes Enforcement Network is issuing a final rule imposing a special measure against North Korea as a jurisdiction of primary money laundering concern under the USA Patriot Act. The rule prohibits U.S. financial institutions from opening or maintaining a correspondent account on behalf of a North Korean financial institution, prohibits U.S. FIs from processing transactions involving North Korean FIs and requires special due diligence measures.

With this rule, North Korea joins Iran and Myanmar as the only countries subject to FinCEN special measures, although Myanmar has been granted relief from the measure, which is expected to be lifted entirely when it makes sufficient progress in addressing AML issues.